Binance Invests $100 Million in Circle Internet Group
Binance has invested $100 million in equity of Circle Internet Financial (CRCL), the company behind USDC, according to a recent SEC filing. The investment involved purchasing 1,237,011 Class A shares at $80.84 each—about 14% below Monday's closing price. These shares are subject to a two-year lockup period and cannot be hedged during that time. The deal includes a five-year commercial agreement where Binance will promote USDC via Circle’s Modular Smart Contract Wallet, with monthly incentive fees based on the amount of USDC in the wallet infrastructure. The stock had recently faced volatility due to stalled legislation (the CLARITY Act) and fell 11% before recovering slightly. Circle reported $701.3 million revenue for its latest quarter and has a market cap near $25.8 billion, trading at around 19 times earnings.
Tickers: $CRCL
Topics: blockchain equity_investment market_reaction stablecoins